Ask Question
BusinessBusiness
7 April, 13:06

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much was stockholders' equity at the end of the year? A. $130,000B. $110,000C. $150,000D. $135,000

+1
Answers (1)
  1. 7 April, 13:19
    0
    The correct answer is B. $110,000.

    Explanation:

    Equity balance mean what a business owes to its owner. The amount invested by owner and net profit earned is part of it is part of equity. Dividend in case of company equals to drawing. It means that equity is net of any dividend payment made by the company. The detail calculation are given below.

    Stockholders' equity opening balance $ 40,000

    Year net income $ 90,000

    Dividend paid ($ 20,000)

    Stockholders' equity closing balance $ 110,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The impact of higher taxes would be examined by: A) a microeconomist. B) a macroeconomist. C) both a macroeconomist and a microeconomist. D) neither a macroeconomist nor a microeconomist.
Answers (2)
All of the following statements about the post-closing trial balance are correct except it a. provides evidence that the journalizing and posting of closing entries have been properly completed. b. contains only permanent accounts. c.
Answers (1)
Thurman Inc., a manufacturing company in Vermont, needs to hire employees for its new office in the city. The positions require the employees to travel accross the country regularly.
Answers (1)
Which of the following is true when thinking about your basic life decisions? Choosing to get married young is not a decision that requires any cautious thought. Attending a boarding school is preferred for everyone.
Answers (1)
In 2020, Clark filed Form 1040 for the 2019 taxable year. Clark did not itemize his deductions. In 2020, Clark received a state income tax refund of $900 plus interest of $10 for overpayment of 2019 state income tax.
Answers (1)
New Questions in Business
Macrosoft Company reports net income of $65,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $60,000, $12,000, and $18,000, respectively.
No Answers
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant
Answers (2)
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.
Answers (1)
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)
Home » Business » Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000.
Sign Up Forgot Password?